The heavy pace of quarterly reports continues next week, when
five components of the Dow Jones Industrial Average and nearly a
third of the Standard & Poor's 500 Index post results.
Detroit auto maker Chrysler LLC could file for bankruptcy
protection next week, and struggling rival General Motors Corp.
(GM) is expected to announce its plans for the Pontiac brand, among
other issues. Auto makers also will report April sales figures next
Friday.
With many efforts to pump money into the economy under way, the
Federal Reserve is unlikely to take dramatic new actions at its
policy meeting Tuesday and Wednesday.
Oil Companies' Record Profits To End
The largest and second-largest U.S. oil companies will post
first-quarter results next week: Exxon Mobil Corp. (XOM) on
Thursday and Chevron Corp. (CVX) a day later. Exxon's long string
of record profits could end with declining earnings because of
lower crude prices. Chevron forecast sharply lower earnings than a
year earlier.
Chrysler Bankruptcy Filing Possible
Chrysler could be forced to file for Chapter 11 bankruptcy
protection as soon as next week even if it reaches a deal with
Italy's Fiat SpA (FIATY), according to people familiar with the
matter. If an agreement with the company's lenders can be reached,
the auto maker would file for bankruptcy protection to get rid of
some liabilities. But if a deal with Chrysler's banks and Fiat
cannot be reached, the auto maker would file for bankruptcy and
begin liquidating, said these people.
A Chrysler bankruptcy filing, while long expected, would
represent a watershed moment in Detroit's long decline, and the
first such move among the once-dominant three auto makers. General
Motors Corp. (GM) is working through similar issues and will likely
be forced to file for bankruptcy in May.
Auto Sales Likely In Line With Feb, March
April auto sales, to be released May 1, are expected to be level
with the past two months, according to J.D. Power & Associates,
which said the battered U.S. auto industry is showing signs of
stabilizing after months of bleak sales. Still, new-vehicle retail
sales in the first half of April were down 33% from a year earlier.
The annual rate of new-vehicle sales in the U.S. is at a 30-year
low of less than 8 million.
Fed Meeting To Focus On Planning
The Federal Reserve is expected to focus on assessing signs of
improvement in the economy, contingency planning and deliberations
on long-term exit strategies at its policy meeting next week.
During the past eight months, the central bank has pumped more than
$800 billion into the U.S.'s financial system.
Media, Credit Card Giants To Report
Two media giants, Time Warner Inc. (TWX) and Viacom Inc. (VIA,
VIAB), will post first-quarter results Wednesday and Thursday,
respectively. Both are suffering from the advertising slump and
lower DVD sales.
Meanwhile, Visa Inc. (V) and MasterCard Inc. (MA) report next
Wednesday and Friday, respectively. Unlike the actual issuers of
plastic, the two giant card network companies are insulated from
credit woes arising from increasing delinquencies because they make
money from payment-processing fees, rather than lending.
Whirlpool Results May Show Bottom
When Whirlpool Corp. (WHR), the world's largest home-appliance
maker, reports first-quarter results Monday, investors likely will
be looking past the anticipated dismal performance for further
indications of whether North American appliance sales are picking
up. Rival Swedish appliance maker Electrolux AB (ELUXY) said this
week it is seeing early signs of a turnaround. Whirlpool in January
predicted North American sales would fall for the fourth straight
year in 2009. Wall Street analysts expect Whirlpool to report a
loss of 18 cents a share, according to a survey by Thomson Reuters.
Revenue from the quarter is seen falling 14% to $3.94 billion.
NYSE Euronext May Discuss Possible Merger
Trans-Atlantic exchange operator NYSE Euronext (NYX) reports
first-quarter earnings Thursday. Despite higher stock-trading
activity, the exchange has struggled with tougher competition from
smaller, electronic stock-trading rivals in the U.S. and Europe.
Observers will watch for hints about merger talks with
Frankfurt-based Deutsche Boerse (DB1.XE), which reportedly have
been revived.
1Q GDP Likely To Show 4.9% Decline
The latest gross domestic product figures, to be released
Wednesday, are expected to show the U.S. economy shrank 4.9% in the
first quarter, compared with 6.3% in the last quarter of 2008.
The S&P Case-Shiller Index, which tracks home prices in 20
U.S. metropolitan areas, is likely to show another decline in the
high double digits in February. The index fell 19% for the
three-month period ended in January compared with the year earlier
period, which was a record annual rate of decline.
The government will report on March personal incomes and
spending Thursday and March factory orders Friday. Also out Friday
are the Institute for Supply Management's report on April
manufacturing and the revised figure for the Reuters/University of
Michigan's consumer sentiment index for April. The private
Conference Board's consumer confidence index for April is due
Tuesday.
Reports on regional manufacturing activity will be released
Monday from the Dallas and Chicago Feds, Tuesday from the Richmond
Fed and Thursday from the Kansas City Fed.
Details On Dendreon Drug Expected
Data on Dendreon Corp.'s (DNDN) Provenge, a controversial
prostate-cancer treatment, will be presented Tuesday at a meeting
of the American Urological Association in Chicago. The company
recently disclosed a key late-stage study that showed Provenge
prolonged survival, making it likely to gain approval of the Food
and Drug Administration, but no specific data were revealed.
Press Conference Marks First 100 Days
President Obama will hold a prime-time press conference
Wednesday. The event, his third official press conference, will
mark his first 100 days in office.
Senate May Vote On Cramdown Bill
The Senate is likely to vote as soon as Tuesday on a measure to
allow bankruptcy judges to rework troubled mortgages. That tool,
known as cramdown, is a central plank of the Obama administration's
strategy to right the housing market. However, it almost certainly
will fail because of opposition from Senate Republicans and some
moderate Democrats.
The House passed legislation that combined the cramdown measure
with a larger bill that would provide a new $100 billion Treasury
line of credit for the Federal Deposit Insurance Corp., which is
facing a cash crunch due to the large number of banks it has had to
bail out.
IMF, World Bank Address Crisis
The International Monetary Fund and World Bank are holding
spring meetings in Washington through Sunday. They will focus in
part on following up the mandate from Group of 20 leaders earlier
in the month to stop the spread of the global financial crisis.
Advanced countries are urged to shore up financial sectors and
consider more stimulus if possible. The groups also are seeking
additional resources for safety net programs, infrastructure and
small businesses in developing countries.
Conferences
Among the significant conferences next week are the Barclays
Capital Retail and Restaurant Conference on Tuesday and Wednesday
in New York, Capital Link Closed-End Funds and Global ETFs
Conference on Wednesday in New York, and SourceMedia Conferences
The Bond Buyer's 4th Annual Pension & OPEB Financing Conference
on Thursday and Friday in Hollywood, Calif.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
kathy.shwiff@dowjones.com
(Thomas Gryta, Jacob Bunge, Robert Tita and other Dow Jones
Newswires staff contributed to this report.)